New Delhi : Gold and silver prices in India have hit a record high of over Rs 71,000 per 10 gram for the gold and Rs 84,000 per kilogram for silver on Monday. Gold has been trading at record highs this year due to its safe investment value among Indians and according to the data compiled by bullion exchanges, the gold prices have surged by Rs 7,700 per 10 grams this year, including an increase of Rs 350 per 10 gram on Monday.
Silver prices also rose on Monday to touch a new high of Rs 84,500 kilogram in Delhi bullion market on Monday, as per the data compiled by Good Returns.
According to the data compiled by Good Returns, the price of 24 carat gold in Delhi was Rs 71,770, an increase of Rs 330 per 10 gram over the previous close when it closed at Rs 71,440 per 10 grams.
The price of 10 gram gold of 22 carat was Rs 65,800, an increase of Rs 300 per 10 gram over the previous close when it was Rs 65,500 per 10 gram.
The price of 10 gram gold of 18 carat was Rs 53,840, an increase of Rs 250 per 10 gram over the previous close when it was Rs 53,590 per 10 gram.
Similarly, the price of one kilogram silver was Rs 84,500 in Delhi and Mumbai while it was slightly higher in Chennai at Rs 84,800 per kilogram.
As per the data compiled by the Good Returns, the price of silver in India went up from Rs 78,000 per kilogram on March 30 to Rs 84,500 in the last 10 days. The data showed that the price of silver was static on two occasions and declined on one occasion in the last 10 days while it increased in the 7 sessions.
Why are gold and silver prices going up?
The Indian gold market is heavily influenced by international factors. The recent surge in prices can be attributed to several global trends.
This surge in gold and silver prices is attributed to strong demand in international markets. In the international markets, spot gold at COMEX was trading at $2,336 per ounce, an increase of $7 from the previous close.
International traders in the USA stayed focused on the bullion market, leading to a sustained rise in the gold prices in the international markets. As a result, prices in Indian bullion markets also reflected the strong prices globally.
Moreover, there are other factors that are driving investors to gold and silver as they have the traits of both an investment instrument and also that of a currency. Both these metals are considered safe haven for investors in times of uncertainty such as this.
For example, geopolitical tensions such as Russia-Ukraine war in Europe and Israel-Hamas war in the Middle East have been driving investors towards safe-haven assets like gold.
Second, inflationary pressures across the globe have made gold an attractive hedge against rising prices.
Third, a weak US dollar tends to make gold cheaper for investors holding other currencies, leading to the increased demand of the yellow metal.
Read More
